Energy transition
Right-way risk can create a false sense of security
Dealers typically find comfort in right-way correlations between their exposure to energy sector counterparties and the creditworthiness of such companies. While this reasoning is unquestionably correct, it may create a false sense of security, writes…
Vitol veteran Preston joins energy brokerage
Cornerstone Global Commodities builds its new commodity financing business with addition of Vitol’s Africa business development head
EU commodity position limits too cumbersome, firms say
Firms argue that EU commodity derivatives position limit proposals under Mifid II are bad for end-users and the energy market
Power capacity mechanisms worry EU electricity traders
Power traders are concerned that a growth of interest in capacity mechanisms could threaten the potency of traded electricity markets across the European Union, while disrupting plans to forge a unified internal energy market
UK power grid needs investment to keep lights on in future
The lights stayed on in the UK last winter, despite thin supply margins and outages at important base-load power plants. But the country’s capacity crunch isn’t going away, and utilities will have to work harder to optimise their output in future, argues…
Energy firms hammer CFTC over position limits rule
The bona fide hedge exemptions in the CFTC's proposed position limits rule have come under attack from energy companies
Energy Risk Software Rankings 2015
Energy Risk conducted a survey in which it asked energy trading firms to nominate their top ETRM vendors, implementation specialists, data vendors and data managers during December 2014 and January 2015. We present the top ranked firms below
Quant ideas: Building a better LNG forward curve
A robust suite of liquefied natural gas (LNG) forward curves is an important prerequisite for the proper valuation and risk measurement of LNG portfolios. This article provides an overview of effective methods for constructing long-term LNG forward price…
BP’s Alvarez reflects on oil spills and other challenges
Orlando Alvarez, president and chief executive of BP Energy Company, reflects on oil spills and other challenges of running a large trading organisation
CFTC reveals members of rebooted energy committee
Koch eyes global expansion; Mercuria names Good CFO; BTG Pactual suffers departures; Trafigura hires CFO in Houston; Quantum CEO moves on; Birol picked for top IEA job
Energy stirs political passions around the globe
The politics of energy are just as fascinating as the physical processes behind it, and are rarely subtle
Remit delegated reporting leaves unanswered questions
EU energy traders have until October to begin reporting the details of standard power and natural gas trades to regulators under Remit. But the exact process by which many of these initial contracts will be reported remains blurry
Oil rout roils E&P and airline hedging strategies
Corporate risk management programmes have had a mixed track record amid the recent plunge in crude prices. Oil producers with a conservative approach to hedging are emerging as some of the winners, while some airlines are feeling regretful about their…
Traders and politicians can learn from dead pilots
Flying a plane requires calm execution, attention to risk and counterintuitive strategies to avoid disaster
Capacity mechanisms spark concern from power traders
Zest for subsidies could threaten plans for unified EU electricity market, argue power traders
EU ETS risk and climate risk
Vertis has been active in carbon markets since 2001 – starting out as a developer of joint implementation projects, before entering into brokerage and dealing when the European Union Emissions Trading Scheme (EU ETS) was established in 2005. Vertis…
Regulation makes data top concern for energy traders
IT teams are playing a vital role in helping energy traders comply with regulation, improve the quality of internal reporting and manage with lower technology budgets. But they face big challenges, particularly when it comes to integrating data
Oil dive increases importance of trading, says Statoil
Asset-based trading seen as crucial by Statoil in environment of lower oil prices
Energy trading firms unready for Remit, survey finds
IT systems not geared for trade reporting under EU anti-manipulation law
Oil, weather and Ukraine boost European gas volumes
2014 saw rising activity in Europe's exchange-traded and OTC gas markets
Morgan Stanley names new commodities co-heads
Evolution unveils European coal desk; Mercuria hires Goldman's cross; New Danske CEO gets to work; Ex-Deutsche Asia power head joins GDF Suez; Gunvor COO steps down
SG CIB wins Risk and Energy Risk Commodity Rankings
Societe Generale Corporate & Investment Banking has topped the poll for the third year in a row in this year’s Risk and Energy Risk Commodity Rankings, which are marked by several dramatic exits and one impressive comeback
US natural gas hedge fund shuts down
Roaring Fork says poor liquidity in energy derivatives foiled its trading strategies
Cutting edge: Kriging smooth energy futures curves
This paper applies the method of kriging from geostatistics to extract smooth curves from energy futures prices. How the method can interpolate market prices is demonstrated, both for contracts with fixed delivery times and for delivery over a period,…